| Pennsylvania House Bill 2188 The "Abandoned and Blighted Property Conservatorship Act" |
| Friday, 01 August 2008 | |
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Pennsylvania House Bill 2188 is currently pending in the House. The "Abandoned and Blighted Property Conservatorship Act" ("The Act") provides community members and municipalities with a procedure by which to take control of and rehabilitate blighted and otherwise neglected properties. If enacted, it will become law 90 days after signed.
The Act provides remedies if the owner of a residential, commercial or industrial property fails to maintain property in accordance with local municipal codes or in a way that is consistent with the public welfare or safety . In that case, a "Party in Interest" can apply to the court in the county where the building is located for conservatorship of the property for the purpose of rehabilitating and renting or selling it. "Party in Interest" is defined as a person or entity who has a direct and immediate interest in a building including:
The Act describes the notice requirements and other standards that must be met by the person or entity applying for conservatorship, as well as the order of priority for proceeds of any sale of the property. These notice requirements include filing a Notice of Lis Pendens with the Recorder of Deeds' Office in the county where the building is located, and written notice to the current owner, political subdivisions and all lienholders.
The court must hold a hearing 120 days of receipt of the petition and render its decision no later than 30 days after completion of the hearing. The conservator shall MAY file a lien against the property in an amount based on the estimated costs to be incurred during the conservatorship. The lien amount may be adjusted from time to time. The conservator shall promptly take possession of the building and other property subject to the conservatorship and shall immediately be authorized to exercise all powers of this act.
Impact:
The ability of a "Party-in-Interest", who is not involved in the mortgage loan, to apply for and potentially be named a conservator could have a significant impact upon the mortgage holder or servicer.
Note: This raises the possibility of third parties such as a neighbor, municipality or non-profit community activist groups using the act to apply pressure for maintenance and repair of a building with a mortgage in default. This is another angle on the attempts by government to contain and manage urban blight.
To view the current version of the proposed legislation, please click here.
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